Tata Steel inks deal for talks on UK as­set sale

Arab News - - BUSINESS -

LON­DON: In­dia’s Tata Steel said that it has agreed to start exclusive talks for the sale of its spe­cial­ity steel as­sets to metal pro­cess­ing firm Lib­erty House.

The unit, which has ac­tiv­i­ties mostly in Bri­tain but also in China, em­ploys 1,700 peo­ple and pro­duces spe­cial­ized steel for the aerospace and au­to­mo­tive in­dus­tries, as well as the oil and gas sec­tor.

How­ever, Tata Steel gave no up­date on the fu­ture of the rest of its UK as­sets — in­clud­ing Bri­tain’s big­gest steel plant at Port Tal­bot in Wales.

Tata Steel ear­lier this year de­cided to off­load its loss-mak­ing Bri­tish as­sets, blam­ing the move on a global over­sup­ply of steel, cheap im­ports into Europe from coun­tries in­clud­ing China, high costs and cur­rency volatil­ity.

“Tata Steel UK to­day an­nounced the sign­ing of a let­ter of in­tent with Lib­erty House Group to en­ter into exclusive ne­go­ti­a­tions for the po­ten­tial sale of its spe­cial­ity steels busi­ness for an en­ter­prise value of £100 mil­lion ($125 mil­lion, 118 mil­lion eu­ros),” it said in a state­ment.

The ac­tiv­i­ties com­prise sev­eral as­sets in South York­shire in north­ern Eng­land, in­clud­ing an elec­tric arc steel­works in Rother­ham, a steel pu­ri­fy­ing fa­cil­ity in Stocksbridge and a mill in Brinsworth.

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